HONG KONG - Crypto broker Voyager Digital said on Monday it had issued a notice of default to hedge fund Three Arrows Capital (3AC) for the fund's failure to make required payments on a loan, in another sign of stress in the embattled crypto industry.
The loan was for 15,250 bitcoin (approximately $324 million) and $350 million worth of USDC, a stablecoin, Voyager said in a statement. It said it intended to pursue recovery from 3AC and was in discussions with its legal advisors concerning the legal remedies available.
Singapore-based 3AC is one of the higher profile crypto companies to have run into difficulties following crypto markets' selloff in recent months.
It is exploring options including a sale of assets and a bailout by another firm, the Wall Street Journal reported last week.
3AC did not immediately respond to a Reuters request for comment.
Voyager said on Monday that it continues to operate and fulfil customer orders and withdrawals, though a statement on the company's website last week said it had lowered its daily withdrawal limits to $10,000 from $25,000.
Voyager said in Monday's statement it had accessed US$75 million of a revolving line of credit previously made available by VC fund Alameda Ventures.
Almeda has offered Voyager a US$200 million cash and USDC revolver and a 15,000 BTC revolver.
(Reporting by Alun John in Hong Kong and Elizabeth Howcroft in London, Editing by Louise Heavens and Susan Fenton)